Taxes and Fees Not Part of ‘Actual Cash Value’ Limits in Auto Insurance Policy


The Fifth Circuit Court of Appeals upheld a District Court’s decision that, based on Texas law, the “actual cash value” limits in an auto insurance policy do not include taxes and fees which are part of purchasing a replacement vehicle. Two policyholders, both Texas residents, sued Elephant Insurance Co. after the insurance company failed to compensate them for the taxes and fees incurred when they purchased replacement vehicles as part of the settlement for their totaled vehicles. Read the full case here.